Ministers locked in rescue talks over Carillion crisis

A government contractor that provides crucial services to hospitals, schools, prisons and the military is expected to go into administration unless ministers agree a state-backed bail out.

The future of Carillion, which employs almost 20,000 people in the UK, was in the government’s hands on Sunday night after lenders indicated that they would not rescue the company without official help.

Ministers including Chris Grayling, the transport secretary, faced questions over their decision to keep awarding hundreds of millions of pounds of public sector work to Carillion last year, including on the HS2 rail link, even as the company’s financial health deteriorated with a string of profit warnings.

Cabinet Office officials were locked in talks over a rescue plan to help the heavily-indebted company, which needs…

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